ducts; commerce and navigation have received a new impulse; labour and trade have been released from the artificial trammels which have so long fettered them; and to a great extent reciprocity, in the exchange of commodities, has been introduced at the same time by both countries, and greatly for the benefit of both. Great Britain has been forced, by the pressure of circumstances at home, to abandon a policy which has been upheld for ages, and to open her markets for our immense surplus of breadstuffs; and it is confidently believed that other Powers of Europe will ultimately see the wisdom, if they be not compelled by the pauperism and sufferings of their crowded population, to pursue a similar policy.

"Our farmers are more deeply interested in maintaining the just and liberal policy of the existing law than any class of our citizens. They constitute a large majority of our population; and it is well known that when they prosper all other pursuits prosper also. They have heretofore not only received none of the bounties or favours of Government, but by the unequal operations of the protective policy have been made, by the burdens of taxation, which it imposed, to contribute to the bounties which have enriched others.

"When a foreign as well as a home market is opened to them, they must receive, as they are now receiving, increased prices for their products. They will find a readier sale, and at better prices, for their wheat, flour, rice, Indian corn, beef, pork, lard, butter, cheese, and other articles, which they produce.

66 The home market alone is inadequate to enable them to dispose of the immense surplus of food and

other articles which they are capable of producing, even at the most reduced prices, for the manifest reason that they cannot be consumed in the country. The United States can, from their immense surplus, supply not only the home demand, but the deficiencies of food required by the whole world.

66

That the reduced production of some of the chief articles of food in Great Britain and other parts of Europe may have contributed to increase the demand for our breadstuffs and provisions is not doubted; but that the great and efficient cause of this increased demand, and of increased prices, consists in the removal of artificial restrictions heretofore imposed, is deemed to be equally certain. That our exports of food already increased, and increasing beyond former example, under the more liberal policy which has been adopted, will be still vastly enlarged, unless they be checked or prevented by a restoration of the protective policy, cannot be doubted. That our commercial and navigating interests will be enlarged in a corresponding ratio, with the increase of our trade, is equally certain; while our manufacturing interests will still be the favoured interests of the country, and receive the incidental protection afforded them by revenue duties; and more than this they cannot justly demand.

"The Act of the 6th of August last To provide for the better organization of the Treasury, and for the collection, safe keeping, transfer, and disbursement of the public revenue,' has been carried into execution as rapidly as the delay necessarily arising out of the appointment of new officers,

taking and approving their bonds, and preparing and securing proper places for the safe keeping of the public money, would permit. It is not proposed to depart in any respect from the principles of policy on which this great measure is founded. There are, however, defects in the details of the measure, developed by its practical operation, which are fully set forth in the report of the Secretary of the Treasury, to which the attention of Congress is invited. These defects would impair, to some extent, the successful operation of the law at all times, but are especially embarrassing when the country is engaged in a war, when the expenditures are greatly increased, when loans are to be effected, and

the disbursements are to be made at points many hundred miles distant, in some cases, from any depository, and a large portion of them in a foreign country. The modifications suggested in the re-, port of the Secretary of the Treasury are recommended to your favourable consideration.

66

It will be important, during your present Session, to establish a territorial Government, and to extend the jurisdiction and laws of the United States over the territory of Oregon. Our laws regulating trade and intercourse with the Indian tribes, east of the Rocky Mountains, should be extended to the Pacific Ocean; and for the purpose of executing them, and preserving friendly relations with the Indian tribes within our limits, an additional number of Indian agencies will be required, and should be authorized by law. The establishment of customhouses, and of post-offices and post roads, and provision for the transportation of the mail, on such

routes as the public convenience will suggest, require legislative au thority. It will be proper, also, to establish a surveyor-general's office in that territory, and to make the necessary provision for surveying the public lands, and bring them into market. As our citizens, who now reside in that distant region, have been subjected to many hardships, privations, and sacrifices in their emigration, and by their improvements have enhanced the value of the public lands in the neighbourhood of their settlements, it is recommended that liberal grants be made to them of such portions of these lands as they may occupy, and that similar grants or rights of pre-emption be made to all who may emigrate thither within a limited period, to be prescribed by law.

"I refer you to the report of the Secretary of the Navy for a satisfactory view of the operations of the department under his charge during the past year. It is gratifying to perceive that while the war with Mexico has rendered it necessary to employ an unusual number of our armed vessels on her coasts, the protection due to our commerce in other quarters of the world has not proved insufficient. No means will be spared to give efficiency to the naval service in the prosecution of the war; and I am happy to know that the officers and men anxiously desire to devote themselves to the service of their country in any enterprise, however difficult of execution.

"The progress and condition of the mail service for the past year are fully presented in the report of the Postmaster-General. The revenue, for the year ending on

the 30th of June last, amounted to 3,487,199 dollars, which is 802,642 dollars and 45 cents. less than that of the preceding year. The payments for the department during the same time amounted to 4,084,297 dollars and 22 cents. Of this sum 597,097 dollars and 80 cents have been drawn from the Treasury. The disbursements for the year were 236,434 dollars and 77 cents less than those of the preceding year. While the disbursements have been thus diminished, the mail facilities have been enlarged by new mail routes of 5,739 miles, an increase of transportation of 1,764,145 miles, and the establishment of 418 new post-offices. Contractors, postmasters, and others, engaged in this branch of the service, have performed their duties with energy and faithfulness deserving commendation. For many interesting details connected with the operations of this establishment you are referred to the report of the Postmaster-General; and his suggestions for improving its revenues are recommended to your favourable consideration. I repeat the opinion expressed in my last annual Message, that the business of this department should be so regulated that the revenues derived from it should be made to equal the expenditures; and it is believed that this may be done by proper modifications of the present laws, as suggested in the report of the Postmaster-General, without changing the present rates of postage.

"With full reliance upon the wisdom and patriotism of your deliberations, it will be my duty, as it will be my anxious desire, to co-operate with you in every constitutional effort to promote the

welfare and maintain the honour of our common country."

MEXICO. In the early part of December, last year, a revolutionary movement took place in Mexico; the result of which was that General Herrera, who was President of the Republic, resigned his office at the end of that month, and General Paredes, who had headed the army in its opposition to the existing Government, was without bloodshed elevated to the Presidency. Previously to this struggle, negotiations had been pending between Mexico and the United States, relative to the serious differences which existed between the two countries: the chief of which was caused by the recognition on the part of the American Government of the independence of Texas, and the subsequent annexation of that republic, which Mexico claims as one of her own provinces, into the States of the Union. The American Government had despatched a Minister to Mexico for the ostensible purpose of amicably adjusting the quarrel, in the month of November, 1845. He arrived at the time when the revolution which overthrew General Herrera was on the point of commencing; and the Mexican Government refused to receive or accredit him. After General Paredes had established himself as President, and the new Government had acquired some stability, the American Minister on the 1st of March, in the present year, again presented his credentials to the Mexican Government, and asked to be accredited by it. On the 12th of that month his request was refused, and he immediately demanded his passports and returned to the United States. War was afterwards form

ally proclaimed by the American President, on the 13th of May, as narrated in the last chapter, and both countries prepared for the struggle.

It should be mentioned that Santa Anna, the former President of the Mexican Republic, had been expelled from power by a revolution which occurred in December, 1844, and was at this juncture living in exile in Havannah. The American Government believing that he would be averse to a conflict with the United States, and that his presence in Mexico might counteract the power of Paredes, issued orders to its cruisers not to obstruct the passage of Santa Anna to Mexico, if he attempted to return.

The war which thus commenced was not ended at the close of the present year. It is not our intention to give any lengthened detail of the operations, which would afford little interest to our readers; but we shall narrate a few of the most important and prominent incidents. The beginning of the campaign was not auspicious for the American arms. General Taylor, who commanded the forces of the United States, and who, since August 1845, had been encamped at Corpus Christi, in Texas, advanced in the month of March to the east bank of the Rio Grande, against the town and fortress of Matamoras, which were strongly garrisoned by Mexican troops; but frequent desertions took place amongst his men— his supplies were cut off, and the Mexicans inclosed him with a superior force. A body of American troops occupied Point Isabel, and there was imminent danger that they would be surrounded and overpowered by the enemy. To relieve this place

General Taylor, who had taken up his position in an intrenched camp before Matamoras, set out on the 1st of May with a body of about 1100 men, his whole force not exceeding 3000. He succeeded in his object; and having been reinforced to the extent of 23,000 men, was returning to his camp before Matamoras, when on the 8th of May he fell in with the Mexican army, the numbers of which were estimated at 6000, near a stream called Pala Alto, and, after a severe conflict, dislodged them from their position. Next day a more decisive engagement took place at Resaca de la Palma, about three miles from Matamoras, and the American forces were victorious.

In a general order issued two days after this battle, General Taylor says "that he congratulates the army under his command upon the signal success which has crowned its recent operations against the enemy. The coolness and steadiness of the troops during the action of the 8th, and the brilliant impetuosity with which the enemy's position and artillery were carried on the 9th, have displayed the best qualities of the American soldier. To every officer and soldier of his command, the General publicly returns his thanks for the noble manner in which they have sustained the honour of the service and of the country."

The Mexican army retreated across the Rio Grande, and General Taylor prepared to take Matamoras by assault. The attacking columns were about to cross the river which separated them from the city, on the 17th of May, when a flag of truce was sent by General Arista, the com